Investors Forex Market Buzz 8.1.16

Investors Forex Market Buzz 8.1.16

This morning, the greenback is trading higher against most of the major currencies, ahead of the US ISM and Markit manufacturing PMI along with the construction spending data, slated to release in a few hours.

The EUR is trading lower against the USD, after data indicated that activity in the manufacturing sector across the Eurozone slowed in July, piling pressure on the European Central Bank to loosen monetary policy again. The final Markit manufacturing PMI in the Eurozone fell in July from June, mainly due to a significant drop in business activity. Additionally, Germany’s final Markit manufacturing PMI edged lower in the same month.

The GBP is trading lower against the USD, after data indicated that activity in UK’s manufacturing sector plunged to its lowest level since 2013, in the wake of Britain’s decision to leave the European Union.

The AUD lost ground against the USD, ahead of the RBA interest rate decision, scheduled tomorrow.

On Friday, the greenback traded lower in the New York session, against the key currencies, after dismal GDP data in the US diminished the prospects of a Fed rate hike as soon as in September. Data indicated that, the nation’s economy expanded at a slower than expected pace of 1.2% on a quarterly basis in 2Q 2016. Moreover, the nation’s final Michigan consumer sentiment index declined in July. Additionally, the Chicago Fed purchasing managers’ index eased in the same month.

This morning at 09:40 GMT, the EUR is trading at 1.1167 against the USD, 0.08% lower from the New York close, after data indicated that, Eurozone’s final Markit manufacturing PMI edged lower in July from June. This morning, the pair traded at a high of 1.1183 and a low of 1.1157. The Euro traded 0.21% higher against the US Dollar in the New York session on Friday, with the pair closing the session at 1.1176. The pair is expected to its find support at 1.1114 and its first resistance at 1.1209.

At 09:40 GMT, the pair is trading at 1.3182, with the Pound trading 0.32% lower against US Dollar from the New York close, after UK’s final Markit manufacturing PMI surprisingly dropped in July. The pair witnessed a high of 1.3261 and a low of 1.3170 during the session. On Friday, the Pound traded marginally lower against the US Dollar in the New York session and ended at 1.3224. Immediate downside, the first support level is seen at 1.3121, while on the upside, the first resistance level is situated at 1.3272.

This morning, at 09:40 GMT, the US Dollar is trading at 102.13 against the Yen, marginally higher from the New York close. Early morning data indicated that, Japan’s final manufacturing PMI climbed in July. During the session, the pair traded at a high of 102.63 and a low of 102.03. On Friday, the US Dollar traded 0.7% lower against the Yen in the New York session and ended at 102.08. The pair is expected to its find support at 101.51 and its first resistance at 103.17.

The US Dollar is trading at 0.9681 against the Swiss Franc at 09:40 GMT this morning, 0.1% lower from the New York close. As Switzerland observes a national holiday today, trading trend in the pair would be determined by global macroeconomic news. The pair traded at a high of 0.9703 and a low of 0.9673 this morning. On Friday, the USD traded 0.27% lower against the CHF in the New York session and ended at 0.9691. The pair is expected to its find support at 0.9620 and its first resistance at 0.9754.

The pair is trading at 1.3072 at 09:40 GMT this morning, with the USD trading 0.31% higher against CAD from the New York close. Moving ahead, market participants would await the release of Canada’s RBC manufacturing PMI data for July, due to release tomorrow. The pair traded at a high of 1.3076 and a low of 1.3024 this morning. The US Dollar declined against the Canadian Dollar in the New York session on Friday, closing 0.69% lower at 1.3032. The pair is expected to its find support at 1.2985 and its first resistance at 1.3171.

The pair is trading at 0.7580 at 09:40 GMT this morning, with the Australian Dollar trading 0.24% lower against US Dollar from the New York close. Overnight data indicated that Australia’s AiG performance of manufacturing index rose in July. This morning, the pair traded at a high of 0.7614 and a low of 0.7573. The Australian Dollar traded 0.52% higher against the US Dollar in the New York session on Friday, with the pair closing the session at 0.7598. The pair is expected to its find support at 0.7513 and its first resistance at 0.7630.

Gold is trading at $1355.90 per ounce at 09:40 GMT this morning, 0.15% lower from the New York close. This morning, the precious metal traded at a high of $1358.80 per ounce and a low of $1353.30 per ounce. On Friday, gold traded 0.7% higher in the New York session and closed at $1357.90 per ounce, as disappointing US economic data led to weakness in the greenback and increased demand for the precious yellow metal. Immediate downside, the first support level is seen at $1342.67 per ounce, while on the upside, the first resistance level is at $1365.57 per ounce.

The precious metal is trading at $20.55 per ounce at 09:40 GMT this morning, 0.78% higher from the New York close. During the session, silver traded at a high of $20.70 per ounce and a low of $20.34 per ounce. In the New York session on Friday, silver rose 0.69% and closed at $20.39 per ounce, tracking gains in gold prices. Immediate downside, the first support level is seen at $20.18 per ounce, while on the upside, the first resistance level is at $20.80 per ounce.

The commodity is trading at $41.06 per barrel at 09:40 GMT this morning, 0.77% lower from the New York close. Crude oil witnessed a high of $41.88 per barrel and a low of $41.02 per barrel during the session. In the New York session on Friday, crude oil rose 1.17% to close at $41.38 per barrel, reversing its previous session losses. Separately, Baker Hughes disclosed that US oil rig count advanced by 3 to 374 last week, registering its fifth consecutive rise. Immediate downside, the first support level is seen at $40.47 per barrel, while on the upside, the first resistance level is at $41.76 per barrel.

In the UK, the final manufacturing PMI registered a drop to 48.20 in July, compared to a level of 52.10 in the prior month. The preliminary figures had indicated a drop to 49.10. Market anticipation was for the manufacturing PMI to ease to 49.10.

The final manufacturing PMI registered a drop to 52.00 in July, in the Eurozone, higher than market expectations of a fall to a level of 51.90. The preliminary figures had indicated a drop to 51.90. In the previous month, the manufacturing PMI had registered a reading of 52.80.

The final manufacturing PMI fell to a level of 53.80 in Germany, in July, compared to market expectations of a drop to 53.70. The preliminary figures had recorded a fall to 53.70. In the previous month, manufacturing PMI had registered a reading of 54.50.

Caixin/Markit manufacturing PMI index registered a rise to 50.60 in July, in China, higher than market expectations of a rise to 48.80. In the previous month, Caixin/Markit manufacturing PMI index had recorded a level of 48.60.

The NBS manufacturing PMI dropped unexpectedly to 49.90 in China, in July, compared to a reading of 50.00 in the previous month. Markets were anticipating the NBS manufacturing PMI to record a steady reading.

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